CHAPTER 189

An Act to amend the Code of Virginia by adding a section numbered
21-127.1, relating to borrowing by counties on behalf of sanitary
districts tn anticipation of bond issues. 8 176]

Approved March 81, 1966

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
21-127.1 as follows:

§ 21-127.1. (a) In anticipation of the issuance of bonds under the
provisions of this chapter and of the receipt of the proceeds of sale of
such bonds, the governing body may on behalf of the sanitary district
borrow money for the purpose for which such bonds have been authorized
and within the maximum authorized amount of the bond issue. Each
such loan shall mature and be paid within two years from the date of its
original issue. The governing body may, in its discretion, retire any
such loans by means of current revenues, special assessments, or other
funds, in lieu of retiring them by means of bonds, provided that the
maximum amount of bonds that has been authorized shall be reduced
by the amount of such loans retired in such manner.

(b) Negotiable notes or other obligations shall be issued for all
moneys borrowed under subparagraph (a). Such notes or other obliga-
tions may be renewed from time to time and money may be borrowed
upon notes or other obligations from time to time for the payment of any
indebtedness evidenced thereby, but all such notes or other obligations
shall mature within the time limited by said subparagraph (a). The
issuance of such notes or other obligations and other details thereof shall
be governed by the provisions of this chapter with respect to bonds in so
far as the same may be applicable.

(c) All such notes or other obligations heretofore issued on behalf
of a sanitary district and proceedings had in connection therewith which
conform to this section are hereby ratified, validated and confirmed and
mee to be legal and as fully binding obligations as if issued under

section.